The Service-Profit Chain: Reflections, Revisions, and Reimaginations

Over the past 25 years, the service–profit chain (SPC) has become a prominent guidepost for service managers and researchers. In this article, we reflect on and synthesize published research to clarify what researchers have learned about the SPC and what remains less well understood. Based on an in-depth discussion of the field, we present a revised SPC and propose multiple areas in which further research would be worthwhile, such as internal service quality as specific systems of human resource management practices, both employee and customer well-being as additional mediators, different targets of employee and customer loyalty, contingencies, and non-linear and feedback effects. We conclude by reimagining the SPC, and we discuss digital and artificial-intelligence–driven changes to the SPC’s structure. Finally, based on the insights we discuss, we inform scholars of the current state of SPC research and provide a detailed agenda for future research.

More than lip service to internal market orientation: a multilevel investigation of the role of internal service quality

Purpose Drawing on self-determination theory and the service-profit chain, this study aims to expand the current understanding of the internal processes of internal market orientation (IMO) on an organizational commitment by investigating the interactive effect between job (task) satisfaction and internal service quality in the field of hospitality and tourism. Design/methodology/approach This study examines the cross-level effects of internal service quality through a time-lagged field study with multilevel structural equation modeling analysis that involved 667 frontline employees from 40 casino hotels. Findings The results reveal the IMO has an indirect effect on affective and normative organizational commitments through the interaction of job (task) satisfaction with internal service quality, such that internal service quality compensates for relatively low levels of job (task) satisfaction. While no indirect effect is found on continuance organizational commitment. Research limitations/implications This study extends the service-profit chain by integrating self-determination theory and by investigating IMO’s indirect effects on commitment through the interaction between job (task) satisfaction and internal service quality. Practical implications The study provides practical solutions to the employee servicing and employee retention dilemmas faced by casino organizations. Originality/value This study advances the service-profit chain literature by proposing and theorizing an internal process of IMO, through the cross-level buffering effect of internal service quality on the relationship between job (task) satisfaction and organizational commitment. This study further presents the theoretical and managerial implications by understanding how employees’ perceptions and interpretations of IMO affect their commitment.

Linking supportive leadership to satisfaction with care: proposing and testing a service-profit chain inspired model in the context of elderly care

PurposeAs marketization has gained ground in elderly care, satisfaction with care has come to play a crucial role in designing for high-quality care. Inspired by the service-profit chain (SPC) model, the authors aimed to gain a deeper understanding of the intricate interplay between supportive leadership practices, organizational climate, job satisfaction and service quality by predicting satisfaction with care.Design/methodology/approachA Swedish sample of frontline elderly care staff (n = 1,342) participated in a cross-sectional questionnaire study. Mediation analyses were conducted to test the proposed model.FindingsAs predicted, engaging in supportive leadership practices was directly and positively associated with satisfaction with care. In addition, as predicted, this relationship was partially mediated by organizational climate and job satisfaction. Moreover, job satisfaction predicted satisfaction with care with service quality explaining a statistically significant part of this relationship.Practical implicationsManagers in elderly care services may improve satisfaction with care in multiple ways but primarily by showing that they care about the staff and ensuring that they are satisfied with their working conditions. Employee job satisfaction seems to be particularly crucial for satisfaction with care, beyond what can be accounted for by care service quality.Originality/valueThe authors proposed a novel service-outcome model. Adding to the original SPC model, the model in this study suggested and validated previously unexplored relationships including a direct path between leadership practices and satisfaction with service and a multiple-mediator model explaining this relationship. Also, new measures of organizational climate and supportive leadership were developed for which satisfactory reliability estimates were obtained.